MyTravel gets more time to pay

TOUR operator MyTravel has won crucial breathing space in its battle for survival after securing new terms on £221.6m of debt.

The maturity date of the bonds will now be extended by three years to January 2007 following the approval of bondholders.

MyTravel - formerly known as Airtours - needed more time to implement restructuring. The group slumped into the red last year after being hit by the impact of the US terror attacks and accounting problems.

Banks have already signed a similar £1.3bn refinancing deal and backed the terms of the proposal to bondholders.

As part of the extension agreed today, the debtholders will get a 21% equity stake in the company and see the annual rate of interest rise from 5.75% to 7%.

The plans were backed by 99.7% of those bondholders to vote - way above the required figure of 75%.